Portfolio of Opportunities for Foreign Investment 2015

CUBA: A PLACE FOR FOREIGN INVESTMENT
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Projects. To focus promotion by stages and
potential sectors/activities and to encourage
diversification in the participation of
business people from different countries. To
prioritize massive promotion for the Special
Economic Development Zones starting with
the work by the Special Economic Development
Zone of Mariel.
12. To consider prioritized activities implying
transfer of technology, production linkage,
carried out in areas having lesser economic
development or contributing to increasing
the efficiency of the production chain.
13. In the extraction of natural resources, providing
public services, developing biotechnology,
wholesale commerce and tourism;
Cuban participation will always constitute
the majority share.
14. Among the requirements for approval of
foreign investment businesses, introducing
criteria planning a balance of payments over
time; this element will be considered to be
among the decisive indicators for approval.
15. In foreign investment businesses there
shall be no free contracting of the workforce
other than in exceptions foreseen by
law. The employer-entity will be maintained
as a business organization and its aim will
be to supply and control the workforce.
Salaries will fit the work contributed, efficiency
and the added value generated
by the enterprise. Payment for the
workforce services is negotiated between
the employer-entity and the enterprise
having foreign capital on the
basis of what has been established by
the Ministry of Labor and Social Security.
To eliminate concepts of salary scales and
establish a minimum wage. Contracted
employees will earn a salary higher than
the minimum wage established.
16. Foreign investment may be directed selectively
towards development of non-state
ownership forms with juridical personality,
prioritizing the cooperative sector.
17. State goods will not be transferred in property
other than in exceptional cases where
they will be destined for purposes of the
country’s development and they do not adversely
affect the political, social and economic
foundations of the State.
18. Exclusivity rights are not granted on the Cuban
market; the foreign partner has equality
of conditions with third parties and may be
supplier and client of the business.
19. In projects aiming at exporting goods or services,
the foreign Party shall guarantee the
market.
20. The country’s shortage in construction capacity
cannot stop the development of the
process of foreign capital investments. Alternatives
required to prevent it may be assessed
even contracting foreign labor force.
21. Bidding for design and construction services
between foreign and Cuban enterprises
whenever the complexity of project so requires,
in accordance with regulations in
legislation in force about the country’s investment
process.
22. To authorize establishing enterprises having
100% foreign capital for executing investment
projects having the complexity and
important that requires it especially for the
development of industrial infrastructure
through special turnkey contacts such as:
Engineering, Procurement and Construction
Contracts (IPC); Engineering, Procurement
and Construction Management Contracts
(IPCM); Build-Own-Operate- Transfer Contracts
(BOOT), Build-Operate-Transfer Contracts
(BOT).
23. In principle the setting up of bank accounts
abroad will not be authorized nor the acceptance
of external guarantees compromising
the retaining of Cuban flows in banks
abroad.
24. The economic information requested for
foreign investment will be made compatible
with international indicators used to measure
the results. To publish statistics that
will be determined.
Furthermore, a general principle to grant new
tax incentives for joint enterprises and parties in
international economic Partnership Agreements
TAXES LAW NO. 118
FOREIGN INVESTMENT
ON PROFITS
0% during 8 years and as an exception
for a longer period. Subsequently 15%.
0% on reinvested profits. It may be
increased to 50% for exploitation of
natural resources.
25. 25. Any increase to the investment budget
will be assumed by the International Economic
Partnership.
was approved; the Special Taxation Regime*
has been established in the new regulatory
framework for foreign investment as follows:
SPECIAL ECONOMIC
DEVELOPMENT ZONE OF MARIEL
0% during 10 years and as an exception
for a longer period. Subsequently 12%.
Application of Lay No. 118 for profits
reinvestment.
LAW 113 TAXATION SYSTEM
35% May increase to 50% for
exploitation of natural resources.
ON USING LABOR FORCE Exempted Exempted Progressive 20% reduction (2012) to
5% (2016)
CONTRIBUTIONS TO LOCAL
DEVELOPMENT
ON SALES OR SERVICES
ON PERSONAL INCOMES
TO PARTNERS OR PARTIES
ON USING OR EXPLOITING
NATURAL RESOURCES
AND PRESERVING THE
ENVIRONMENT (5 TAXES)
CUSTOMS
0% during investment recovery. Exempted Is being established gradually in the
Budget Law
0% during first year of operations,
subsequently 50% discount on
wholesale sales and on services.
0% during first year of operations,
subsequently 1%
Exempted Law No. 118 applies 15%
50% discounts during investment
recovery
Exempted during the investment
process
* Joint enterprises and international economic partnerships
are governed by what has been established in
legislation in force (Law No. 113 of the Taxation System),
with the adjustments of this special regime. Enterprises
with 100% foreign capital pay taxes according to
legislation in force. In the case of International Economic
Law No. 118 applies
Exemptions on means, equipment and
goods in the investment process
2% on wholesale sales and 10% on
servicers. New taxable items shall be
gradually incorporated.
For the use of beaches, waste disposal
into hydrographic basins and terrestrial
waters: defined in the annual Budget
Law. Use of bays and forestry
resources according to taxable items
in Law 113
Taxable items are established in the
Customs Duties
Partnership Agreements for Production, Services and
Professional Services Management, this is governed
by what has been established in legislation in force
(Law No. 113 of the taxation System) with the adjustments
of this special regime, especially the tax on
profits in the gross incomes type, 4%.
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CUBA: A PLACE FOR FOREIGN INVESTMENT